P1. (10 points) London Company provided the following income statements for its first 2 years of operation. Prepare a horizontal analysis of London Company's results. Year 1 $975,000 Year 2 $1,150,000 Net sales Less: cost of goods sold (676,000) (910,000) Gross margin $299,000 $ 240,000 Less: Operating expenses (185,000) (215,000) Income taxes (45,600) (10,000) Net income $68,400 $ 15,000